What is the future value of the loan nine years from now

Assignment Help Financial Management
Reference no: EM131602594

A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,200 for 99 years. The loan rate is 55 %. At the end of 99 years, he believes that he can sell the land for $80,000. If he is correct on the future price, did he make a wise investment?

What is the future value of the loan 9 years from now?

Reference no: EM131602594

Questions Cloud

Identify the arbitrage opportunity : Identify the arbitrage opportunity and carefully describe how you would profit off of it.
Define a method printfeetinchshort : Define a method printFeetInchShort, with int parameters numFeet and numInches - return
What is the annual payment on loan for cooley landscaping : What is the annual payment on this loan for Cooley Landscaping?
Equally costly wage increase : Why might a firm prefer to offer its employees free flu shots if the alternative is an equally costly wage increase?
What is the future value of the loan nine years from now : A speculator has purchased land along the southern Oregon coast. What is the future value of the loan 9 years from now?
Create setters methods for all the public attributes : Create setters and getters methods for all the public attributes in each of the classes - Create objects that prompt the user
Find equation of tangent line to the curve at given point : Find the slope of the graph of f(x) = 1 - ex at the point where it crosses the x-axis.
A problem that goes beyond something : The variety of strategies used in solving what I can imagine will be some rather significantsubstantive/unique problems.
What is the profit-maximizing solution : What is the profit-maximizing solution for the monopoly? How large are its profits?

Reviews

Write a Review

Financial Management Questions & Answers

  Financing the purchase using the lease-equivalent loan

Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. What is the effective after-tax lease borro..

  What personal tax rate would make investors equally

If the corporate tax rate is 30 percent, what personal tax rate would make investors equally willing to receive the dividend or to let Carlson invest money

  Current mammography system is five years old

You are the newly appointed radiology director of a 300-bed community hospital. On your first day of duty, your chief radiologist approaches you about the idea of obtaining a new state-of-the-art mammography system costing $300,000.00. The current ma..

  Bond rating agencies have invested significant sums of money

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and non-quantitative facts best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate pe..

  What are the companys days sales in receivables

A company has net income of $265,000, a profit margin of 9.3 percent, and an accounts receivable balance of $145,300. Assuming 80 percent of sales are on credit, what are the company’s days’ sales in receivables?

  What some of the factors that a finance manager considers

What some of the factors that a finance manager considers in choosing an appropriate discount rate for a capital investment project

  About the shares outstanding

The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..

  What must be expected annual cash flow-profitability index

A project has the following cash flows, for years 0 through 3 respectively: -24,094, 9,209, 10,998, 9,424. If the required return is 11.1 percent, what is the profitability index? A project has an initial cost of $96,109, and promises to pay a fixed ..

  What is length of the days sales in inventory

Sow Tire, Inc., has sales of $1,456,000 and cost of goods sold of $986,000. What is the length of the days’ sales in inventory?

  What will be the after-tax cash flow of this sale

Suppose you sell a fixed asset for $123,000 when its book value is $143,000. If your company’s marginal tax rate is 40 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

  Mmc repays the loan in equal monthly payments

What is the amount of the monthly payment if MMC repays the loan in equal monthly payments?

  What is the value of endowment in todays dollars

A wealthy philanthropist has established the following endowment for a hospital. The details are as follows: a cash deposit of $ 12 M two years from now; an annual cash deposit of $4M per year for the next five years. The first $4M will start today; ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd